BP ready for court battle over Gulf of Mexico oil disaster

BP is prepared for a court fight with US authorities over civil penalties for
its role in the Gulf of Mexico oil spill, arguing that the fine it should
face should be less than a quarter of the $20bn (£12.9bn) estimated by some
analysts.

BP’s overall provision for the spill includes $3.5bn for fines under the Clean Water Act, although this could be dwarfed by the total possible fine of $20bn. BP disputes the US authorities’ view of both how much oil was spilled and the level of negligence involved.Photo: REUTERS

“We have said all along we would be prepared to settle on reasonable terms, [but] we are prepared to go to trial.”

BP’s overall provision for the spill includes $3.5bn for fines under the Clean Water Act, although this could be dwarfed by the total possible fine of $20bn. BP disputes the US authorities’ view of both how much oil was spilled and the level of negligence involved.

It strenuously denies a charge of gross negligence, which carries a maximum penalty of $4,300 per barrel spilt. Ordinary negligence carries a penalty of up to $1,100 per barrel.

“What is clear is that [gross negligence] is a very high bar, and we firmly believe the bar is not met in this case," said Mr Bondy. He said that the actual range of penalties BP could face started “far far below” the $5bn often cited as the minimum possible.